Canada’s Workers' Compensation Act: the basics

While workplaces must be compliant with occupational health and safety standards, knowing what to do when an employee suffers from work-related injuries or illnesses is also a must. For this matter, the laws on workers’ compensation provide guidance for both employers and employees alike.

What is the Workers’ Compensation Act in Canada?

The Canadian Workers’ Compensation Act is a set of laws that provide benefits to employees who get injured due to a workplace incident or those who contracted occupational diseases.

These laws govern the employers who are required to register, the premiums that must be paid, and the administration of benefits to injured or ill employees.

Enactment

Each province and territory in Canada has enacted its own laws on workers’ compensation benefits. Its main goals are to establish a workplace injury insurance in the province or territory, and to establish their own Workers’ Compensation Boards (WCBs).

Some examples of laws governing workers’ compensation in every province or territory:

• Ontario: Workplace Safety and Insurance Act, 1997
• Québec: Workers’ Compensation Act
• British Columbia: Workers Compensation Act

Other provinces and territories would have similar laws.

These Workers’ Compensation Acts are in addition to the workers’ compensation for federal and government employees through the Government Employees Compensation Act (GECA).

Coverage

All workplaces must be covered by workers’ compensation insurance. What will matter is what law will govern in such a workplace or which WCB has jurisdiction over it.

Coverage of workers’ compensation laws can be summarized as follows:

• GECA: employees of federal departments or agencies and Crown corporations
• Provincial or territorial workers’ compensation acts: employees from the private sector

Some sectors are exempt from the coverage of these laws. For example, GECA excludes Canadian Forces – they have a separate workers’ compensation program. Also, workers employed in mines are exempt under British Columbia’s Workers Compensation Act.

To know if your workplace is covered by your province’s workers’ compensation law, contact a lawyer in your area.

Learn about how long you can be on workers’ compensation in Canada based on each benefit granted under the law.

What are the different parts of the Workers’ Compensation Act?

While these laws differ in the jurisdictions it covers, they all have the same provisions providing for:

1. the establishment of (or the continuation of) the provincial WCB
2. the benefits that employees are entitled under the law
3. the administrative process in filing for the employees’ benefits, and how to appeal a decision

However, for specific interpretations of the Workers’ Compensation Act in your province, it’s best to consult with a workers’ compensation lawyer.

1. Workers’ Compensation Boards (WCBs)

Every employer must be in close contact with its WCBs when its employee suffers from workplace injury or diseases.

Some of these WCBs include:

• Ontario: WSIB
• Québec: CNESST
• British Columbia: WorkSafeBC
• Alberta: WCB Alberta
• Nova Scotia: WCB Nova Scotia

Computation of Premiums

Assessment of insurance premiums to be charged to the employer is undertaken by these WCBs.

For example, under WorkSafeBC, the computation of insurance premiums would be:

(Employer’s industry’s base premium rate +/- Employer’s experience rating) x Assessable payroll = Total premiums

2. Employees’ Benefits

Under the provincial or territorial workers’ compensation laws, the benefits that employees may receive after suffering a work-related injury or illness are:

• Lost earnings: replaces a percentage of the employees’ wages during the time that they cannot work or while they’re recovering
• Non-economic loss: also called long-term disability benefits, that is given to employees who becomes permanently impaired or where the injury or illness will not improve anymore
• Retirement income: replaces the retirement income lost due to the work-related injury or illness once the employee turns 65 years old
• Health care and rehabilitation: payment of approved health care costs (hospitalization, surgery, prescription drugs, medical devices, etc.) to help the employee recover and return to work

While assessments are usually similar across provinces and territories, there may be variations depending on the rate or calculation by your WCB.

Injuries/Illnesses Covered

There are numerous injuries and illnesses that are covered under these workers’ compensation laws in Canada. Some examples are:

• Physical injuries: back injuries, hand sprains, contusions, noise-induced hearing loss
• Psychological and mental health conditions: Post-Traumatic Stress Disorder
• Occupational diseases: COVID-19, cancer due to chemical exposure, respiratory diseases

Watch this video for an actual case of a work-related mental health condition whose treatment was facilitated by Ontario’s WSIB:

Consult a lawyer in your area to know more about injuries or illnesses covered by your Workers’ Compensation Act. Those in Montréal, for example, can contact any of the best workers compensation lawyers in Québec as ranked by Lexpert.

Benefits in case of death

If a work-related injury or illness results in the death of an employee, the law on workers’ compensation also provides that benefits must be given to the employee’s surviving family.

These benefits include:

• A lump sum (one-time) payment to the surviving spouse
• Monthly pensions to the surviving spouse, children, or other dependants
• Funeral and burial expenses

Again, the computation as to the specific amounts will vary according to each WCB. Employers and employees are encouraged to work with their WCB or consult with a workers’ compensation lawyer.

3. Process in applying for benefits

First, everyone in the workplace must know what do when an employee is injured at work. Afterwards, claims for employees’ benefits must be submitted to the WCBs.

Submission of claims or reporting to the WCB follows these steps:

1. The employee, their employer, and their physician must report the work-related injury or illness to the WCB following these timelines:

• serious incidents and fatalities: as soon as possible
• other injuries or illnesses, if the employee misses work, or if they need medical attention: within the period set by the WCB

2. The employee, their employer, and their physician will be informed of the decision of the WCB. An appeal may be filed with the WCB. These decisions may be appealed with the WCB.

To know more about your province’s Workers’ Compensation Act, contact a Lexpert-Ranked workers compensation lawyer in Canada.